Oct 8 (Reuters) - UBS raised its 2008 gold price forecast to $760 per ounce from $650 per ounce and 2009 forecast to $700 per ounce from $550 per ounce.
The brokerage said price-elastic components of supply and demand showed clear signs that the gold market has adjusted to the sharp increase in price of the past few years.
UBS said the past twelve months had seen a strong jewellery demand growth, despite higher prices, adding that it expects further waves of investment and speculation for gold in the next 12 months to 18 months. (Reporting by Ramya Dilip in Bangalore)
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